Question 1

Compared to the income of the typical Canadian 144 years previously, how much was the income of the typical Pakistani in 2014?

Accepted Answer

A)  about 1/2 as much 
B)  about 2/3 as much 
C)  about the same 
D)  about 2 times as much 
A)  about 1/2 as much 
B)  about 2/3 as much 
C)  about the same 
D)  about 2 times as much

Question 2

Which statement best explains how investment and growth rates relate across countries?

Accepted Answer

A)  They are negatively related. 
B)  They are positively related. 
C)  They are negatively related for rich countries, but positively related for poor countries. 
D)  They are positively related for rich countries, but negatively related for poor countries. 
A)  They are negatively related. 
B)  They are positively related. 
C)  They are negatively related for rich countries, but positively related for poor countries. 
D)  They are positively related for rich countries, but negatively related for poor countries.

Question 3

What is a direct determinant of productivity?

Accepted Answer

A)  human capital 
B)  wage 
C)  price of natural resources 
D)  unemployment rate 
A)  human capital 
B)  wage 
C)  price of natural resources 
D)  unemployment rate

Question 4

If the productivity slowdown had not occurred in 1973, the income of the average Canadian today would be about 70 percent higher.

Accepted Answer

A) True 
 B)False

Question 5

How does income in developing countries like India and Pakistan compare with that in Canada?

Accepted Answer

A)  It's about 1/16 or less of that in developed countries like Canada. 
B)  It's about 1/8 of that in developed countries like Canada. 
C)  It's about 1/4 of that in developed countries like Canada. 
D)  It's about 1/3 to 1/2 of that in developed countries like Canada. 
A)  It's about 1/16 or less of that in developed countries like Canada. 
B)  It's about 1/8 of that in developed countries like Canada. 
C)  It's about 1/4 of that in developed countries like Canada. 
D)  It's about 1/3 to 1/2 of that in developed countries like Canada.

Question 6

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Question 7

Why are Canadian workers more productive than the Chinese?

Accepted Answer

A)  because Canada is a federal state 
B)  because Canadians have more capital to work with 
C)  because prices are higher in Canada than in China 
D)  because the most productive Chinese workers have emigrated to Canada 
A)  because Canada is a federal state 
B)  because Canadians have more capital to work with 
C)  because prices are higher in Canada than in China 
D)  because the most productive Chinese workers have emigrated to Canada

Question 8

What is an externality aspect of education?

Accepted Answer

A)  Education produces a return to society that is greater than the return to the individual. 
B)  Education produces a return to society that is less than the return to the individual. 
C)  Education produces costs to society that are greater than the costs to the individual. 
D)  Education produces costs to the individual that are greater than the costs to society. 
A)  Education produces a return to society that is greater than the return to the individual. 
B)  Education produces a return to society that is less than the return to the individual. 
C)  Education produces costs to society that are greater than the costs to the individual. 
D)  Education produces costs to the individual that are greater than the costs to society.

Question 9

Which statement best characterizes the variations in real GDP per person and its rate of growth across countries?

Accepted Answer

A)  Real GDP per person differs widely across countries, but the growth rate of real GDP per person is similar across countries. 
B)  Real GDP per person is very similar across countries, but the growth rate of real GDP per person differs widely across countries. 
C)  Real GDP per person and the growth rate of real GDP per person are similar across countries. 
D)  Real GDP per person and the growth rate of real GDP per person vary widely across countries. 
A)  Real GDP per person differs widely across countries, but the growth rate of real GDP per person is similar across countries. 
B)  Real GDP per person is very similar across countries, but the growth rate of real GDP per person differs widely across countries. 
C)  Real GDP per person and the growth rate of real GDP per person are similar across countries. 
D)  Real GDP per person and the growth rate of real GDP per person vary widely across countries.

Question 10

How does income per person in Canada compare with income per person in China and India?

Accepted Answer

A)  It is about 3.5 times that in China and 8 times that in India. 
B)  It is about 12 times that in China and 10 times that in India. 
C)  It is about 10 times that in China and 13 times that in India. 
D)  It is about 18 times that in China and 16 times that in India. 
A)  It is about 3.5 times that in China and 8 times that in India. 
B)  It is about 12 times that in China and 10 times that in India. 
C)  It is about 10 times that in China and 13 times that in India. 
D)  It is about 18 times that in China and 16 times that in India.

Question 11

One of the ten principles of economics is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. What is the opportunity cost of that capital accumulation?

Accepted Answer

A)  People need to work longer hours, thus having less time for leisure. 
B)  People need to consume less goods and services now in order to enjoy more consumption in the future. 
C)  People need to recycle resources so that future generations can produce goods and services with the accumulated capital. 
D)  People need to devote less time in school and more at work. 
A)  People need to work longer hours, thus having less time for leisure. 
B)  People need to consume less goods and services now in order to enjoy more consumption in the future. 
C)  People need to recycle resources so that future generations can produce goods and services with the accumulated capital. 
D)  People need to devote less time in school and more at work.

Question 12

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Accepted Answer

A) True 
 B)False

Question 13

If a production function has constant returns to scale, how can output be doubled?

Accepted Answer

A)  by doubling labour 
B)  by doubling any one of the inputs 
C)  by doubling all of the inputs 
D)  by increasing all inputs by more than double 
A)  by doubling labour 
B)  by doubling any one of the inputs 
C)  by doubling all of the inputs 
D)  by increasing all inputs by more than double

Question 14

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Question 15

From 1960 to 1990, what happened to the growth rates of Canada and South Korea?

Accepted Answer

A)  South Korea had a higher growth rate than Canada because it had a higher ratio of investment to GDP. 
B)  Canada had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. 
C)  South Korea had a higher growth rate than Canada, even though it had a similar ratio of investment to GDP. 
D)  Canada had a higher growth rate than South Korea, even though it had a similar ratio of investment to GDP. 
A)  South Korea had a higher growth rate than Canada because it had a higher ratio of investment to GDP. 
B)  Canada had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. 
C)  South Korea had a higher growth rate than Canada, even though it had a similar ratio of investment to GDP. 
D)  Canada had a higher growth rate than South Korea, even though it had a similar ratio of investment to GDP.

Question 16

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

Accepted Answer

A)  a societal good 
B)  a private good 
C)  a public good 
D)  a normal good 
A)  a societal good 
B)  a private good 
C)  a public good 
D)  a normal good

Question 17

If your Canadian-based firm opens and operates a new long board factory in Belize, what type of investment is your firm engaging in?

Accepted Answer

A)  foreign portfolio investment 
B)  foreign financial investment 
C)  foreign direct investment 
D)  foreign capital investment 
A)  foreign portfolio investment 
B)  foreign financial investment 
C)  foreign direct investment 
D)  foreign capital investment

Question 18

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 19

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982. What is the most likely explanation?

Accepted Answer

A)  a decrease in the growth of human capital per person 
B)  capital wearing out so that capital per person fell 
C)  changes in technological progress 
D)  the continued depletion of natural resources 
A)  a decrease in the growth of human capital per person 
B)  capital wearing out so that capital per person fell 
C)  changes in technological progress 
D)  the continued depletion of natural resources

Question 20

Suppose that an economy with constant returns to scale doubled its physical capital stock, doubled its available natural resources, and doubled its human capital, but kept the size of the labour force the same. How does the change in output compare to the change in productivity?

Accepted Answer

A)  Output would stay the same and so would its productivity. 
B)  Output and productivity would increase, but by less than double. 
C)  Output and productivity would increase by more than double. 
D)  Output would increase by less than double, but productivity would double. 
A)  Output would stay the same and so would its productivity. 
B)  Output and productivity would increase, but by less than double. 
C)  Output and productivity would increase by more than double. 
D)  Output would increase by less than double, but productivity would double.

Compared to the income of the typical Canadian 144 years previously, how much was the income of the typical Pakistani in 2014?

Which statement best explains how investment and growth rates relate across countries?

What is a direct determinant of productivity?

If the productivity slowdown had not occurred in 1973, the income of the average Canadian today would be about 70 percent higher.

How does income in developing countries like India and Pakistan compare with that in Canada?

Both the standard of living and the growth of real GDP per person vary widely across countries.

Why are Canadian workers more productive than the Chinese?

What is an externality aspect of education?

Which statement best characterizes the variations in real GDP per person and its rate of growth across countries?

How does income per person in Canada compare with income per person in China and India?

One of the ten principles of economics is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. What is the opportunity cost of that capital accumulation?

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

If a production function has constant returns to scale, how can output be doubled?

What is the difference between human capital and technology?

From 1960 to 1990, what happened to the growth rates of Canada and South Korea?

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

If your Canadian-based firm opens and operates a new long board factory in Belize, what type of investment is your firm engaging in?

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982. What is the most likely explanation?

Suppose that an economy with constant returns to scale doubled its physical capital stock, doubled its available natural resources, and doubled its human capital, but kept the size of the labour force the same. How does the change in output compare to the change in productivity?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 7: Production and Growth

Compared to the income of the typical Canadian 144 years previously, how much was the income of the typical Pakistani in 2014?

Which statement best explains how investment and growth rates relate across countries?

What is a direct determinant of productivity?

If the productivity slowdown had not occurred in 1973, the income of the average Canadian today would be about 70 percent higher.

How does income in developing countries like India and Pakistan compare with that in Canada?

Both the standard of living and the growth of real GDP per person vary widely across countries.

Why are Canadian workers more productive than the Chinese?

What is an externality aspect of education?

Which statement best characterizes the variations in real GDP per person and its rate of growth across countries?

How does income per person in Canada compare with income per person in China and India?

One of the ten principles of economics is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. What is the opportunity cost of that capital accumulation?

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

If a production function has constant returns to scale, how can output be doubled?

What is the difference between human capital and technology?

From 1960 to 1990, what happened to the growth rates of Canada and South Korea?

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

If your Canadian-based firm opens and operates a new long board factory in Belize, what type of investment is your firm engaging in?

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982. What is the most likely explanation?

Suppose that an economy with constant returns to scale doubled its physical capital stock, doubled its available natural resources, and doubled its human capital, but kept the size of the labour force the same. How does the change in output compare to the change in productivity?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters